Thread by @mrauchs

1) I'm delighted to announce the launch of the Cambridge Bitcoin Electricity Consumption Index (CBECI), a live model that tracks the estimated annual electricity usage of the Bitcoin network in real time.

cbeci.org

2) The CBECI is a pilot project created and maintained by the @CambridgeAltFin in response to growing concerns over the sustainability and environmental impact of Bitcoin mining.

3) There are two diametrically-opposed sides in this debate:

a) "Bitcoin mining boils the oceans and directly contributes to climate change!"
b) "Bitcoin is the most efficient money ever devised and will drive the green revolution!"

4) I think it's fair to say that the debate lacks some nuance - and that is partially due to the shortage of reliable data and analysis.

This already starts with agreeing in the first place on a robust estimate of Bitcoin's annual electricity consumption.

5) A number of studies and articles have been published on this topic. They use a variety of methods which, unsurprisingly, often results in substantially different estimates.

With the exception of @DigiEconomist's BECI, they only provide a snapshot at a given point in time.

6) The CBECI is based on a bottom-up approach initially developed by @zorinaq in 2017 (blog.zorinaq.com/bitcoin-electr…).

I won't go into details about the methodology here - please visit cbeci.org/methodology/ for a comprehensive overview with all assumptions transparently highlighted.

7) One important element is to put the yearly consumption figure into perspective, i.e. do comparisons.

However, a major impediment to a balanced discussion is the tendency of both Bitcoin critics and supporters to choose comparisons that support their narrative.

8) We would like to provide an unbiased and objective ground for comparisons that presents the two sides of the debate so that visitors can independently assess the situation and make up their own mind.

cbeci.org/comparisons/

9) For instance, did you know that Bitcoin's annualised electricity consumption could cover the electricity needs of the entire @Cambridge_Uni for a whopping 365 years?

This seems like a colossal waste.

10/ But speaking of wasted electricity:

The amount of electricity consumed by idle (i.e. always-on but inactive) home devices in the USA alone could power the entire Bitcoin for four years!

11/ We plan to add more comparisons over time, as long as the proportion between the two different views ("make it look small" vs. "make it look large") remains balanced.

12/ We also noticed that there are still many open questions about Bitcoin that confuse a lot of people:

What is the value proposition? What is the role of PoW? Why does it use so much electricity? Can Bitcoin be made "more efficient"?

13/ We've thus added a FAQ section that explains these topics in (hopefully!) simple terms. This also includes clearing up common misconceptions on Bitcoin mining that get frequently repeated in various channels and outlets.

14/ We consider this to be an educational resource and will continue adding new explanations over time.

cbeci.org/faq/

15/ We welcome comments, feedback, and suggestions on how to improve the index and website!

Please reach out directly to the team members (@ApollineBlandin, @dektox, and myself) or use the contact form on our website: cbeci.org/contact/.

16/ Finally, this is only the first phase of a larger data project on cryptocurrency mining (see thread below).

We intend this project to be collaborative in nature, so please feel free to reach out if you are interested in contributing in some form!

https://twitter.com/mrauchs/status/1139152375967625216